Bloomberg/Kiyoshi Ota
SoftBank Group launched a long-awaited $3 billion tender offer for WeWork stock and the offer expires on 1 April 2020, reported Bloomberg.
WeWork parent We Co. agreed to the tender offer from the Japanese conglomerate last month, one element of a $9.5 billion rescue package for the ailing office-sharing company. As part of SoftBank’s proposal to buy existing shares, WeWork co-founder Adam Neumann is entitled to sell as much as $970 million worth of his stock.
The bailout package—which also included millions of dollars in other payouts for Neumann as he exited the company—came as WeWork teetered on the brink of insolvency. The favourable terms for Neumann angered some employees, many of whom are facing job cuts as the company turns its focus to profitability. Last week, WeWork said layoffs would affect 2400 employees around the world or almost 20 per cent of its workforce.
Executives at SoftBank had been discussing a way to alter or shrink its offer, though it was unclear how they would renege on the agreement, Bloomberg reported last week. The tender offer launch is about three weeks behind its targeted kick-off, which was five business days after an accelerated $1.5 billion equity injection on 30 October 2019.
Besides the new equity injection and the tender offer, SoftBank’s rescue package also includes about $5 billion in new debt financing.
MOST READ
INVESTMENT
Aldar to invest AED 2 million in Abu Dhabi...INVESTMENT
Oil drops 31 per cent as price war erupts...INVESTMENT
India seizes Yes Bank, limits withdrawalsINVESTMENT
ING Groep plans to sell its Turkish unitINVESTMENT
Bahrain considers stake sell in oil assetsINVESTMENT
SABB seeks to boost corporate lendingINVESTMENT
UBS launches new private client programINVESTMENT
Dubai’s W Motors seeks funds to go electricINVESTMENT
Egypt plans to resume IPOs of parastatalsINVESTMENT
HSBC considering exiting from TurkeyINVESTMENT
Zimbabwe turns to UAE to sell a stake in...INVESTMENT
Dubai's DP World buys 44 per cent stake in...
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
